Texas Industries reduces 1Q loss

29 September 2011

Texas Industries’ turnover improved by 5.6% to US$181.7m, in the first quarter ending in August and the pre-tax loss was reduced from US$38.6m, including a US$29m loss on a debt retirement, to US$7.6m.

In the cement business, turnover improved by 12.1% to US$85.6m, while the trading profit shot up by 64.4% to US$6.5m. Cement shipments recovered by 11.0% to 0.88Mt (0.97Mst) and the average cement price achieved improved by 1.1% to US$78.41, while the cost of sales was up by just 0.8%. The average cement price was unchanged in Texas, but improved by some 3% in California. Company cement shipments advanced by 8% in Texas and by 17% in California. Some 67% of the group’s cement volume was sold in Texas in the period, compared with 70% in the corresponding period last year. The gain from the sale of emission credits in California were US$2.5m, compared with a US$1.7m profit a year earlier.

Turnover from aggregates, shale and clay declined 9.8% to US$45.1m, of which aggregates accounted for a 22.4% reduction to US$22.1m. Aggregates shipments fell 12.3% to 2.85Mt (3.14Mst) and the average price eased by 4.9% to US$6.4/t (US$7.06/st). These reflect come asset exchanged between Texas Industries and Cemex. At the underlying level, volumes were off by some 5% and average prices by 3%.

The ready-mixed concrete package products operations generated a turnover 12.6% higher at USS71.2m. Helped by asset exchanged carried out with other companies, asset swaps carried out in April and in July of this year, deliveries of ready-mixed concrete advanced by 10.8% though in the already existing operations, there was as 7% reduction in shipments and a 2% lower average price. The trading loss amounted to US$2.34m compared with a profit of US$0.75m.